Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q3 2025 Earnings Presentation
28 slides from Westinghouse Air Brake Technologies's earnings presentation, Oct 22, 2025
Slide 1: Wabtec Financial Results & Company Highlights
Wabtec Financial Results & Company Highlights T H I R D Q UA RT E R 2 0 2 5 1
Slide 2: Forward Looking Statements & Non-GAAP Financial Information
Forward Looking Statements & Non-GAAP Financial Information This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
Slide 3: Today's Participants
Today’s Participants RAFAEL JOHN KYRA SANTANA OLIN YATES President & Executive Vice President & Vice President, Chief Executive Officer Chief Financial Officer Investor Relations 3
Slide 4: 3Q 2025 Overview
3Q 2025 Overview Increased sales driven by Freight, including Inspection Sales $2.89B Up 8.4% YOY Technologies acquisition, and Transit segments Operating Margin 17.0% 21.0% Operating margin benefits from sales growth and improved gross margin GAAP Adjusted Earnings Per Share $1.81 $2.32 GAAP EPS up
Slide 5: 2025 Market Expectations
2025 Market NORTH AMERICAN FREIGHT TRAFFIC NORTH AMERICAN AVERAGE ACTIVE LOCOMOTIVES Expectations 3.0% 2.5% 2.3% FAVORABLE / UNFAVORABLE 1.4% FREIGHT NA Traffic + Active Locomotive Fleet 4Q24 1Q25 2Q25 3Q25 3Q22 3Q23 3Q24 3Q25 International Freight + Source: Association of American Railroads Source:
Slide 6: Executing On Our Value Creation Framework
Executing On Our Value Creation Framework VA L U E C R E AT I O N FRAMEWORK RECENT WINS Accelerate innovation of scalable technologies ▪ Awarded the largest locomotive contract in history with Kazakhstan Rail … valued at $4.2 billion Grow and refresh expansive global installed base ▪ Ultra class min
Slide 7: Transit's Attractive Value Creation Framework
Transit’s Attractive Value Creation Framework INDUSTRY ORDERS MOMENTUM ▪ Record backlog at Car builders – avg ~6 yrs of sales $2,919 ▪ Passenger growth … Europe & India driven $2,754 $2,383 ▪ Public investment in rail continues +7.5% ▪ Transit Segment’s Quality of backlog (Margin) increasing 3Q25 YT
Slide 8: 3Q 2025 Financial Summary
3Q 2025 Financial Summary SALES OP INCOME / OP MARGIN EARNINGS PER SHARE $607M $2.32 $2.89B $2.66B $524M 21.0% $2.00 +16.0% $491M $1.81 YOY $433M 19.7% 17.0% $1.63 +11.0% YOY 16.3% 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ(1) ADJ(1) GAAP GAAP ADJ(1) ADJ(1) 8.4% INCREASE (7.5% E
Slide 9: 3Q 2025 Sales
3Q 2025 Sales ($ in millions) PRODUCT LINE 3Q’25 YOY 3Q KEY DRIVERS Services(1) $744 (11.6)% SERVICES Lower sales driven by fewer modernization deliveries as expected Equipment $677 32.0% EQUIPMENT Higher locomotive deliveries Components(1) $375 1.1% COMPONENTS Digital Intelligence $297 45.6% Indust
Slide 10: 3Q 2025 Consolidated Gross Profit
3Q 2025 Consolidated Gross Profit 3Q KEY DRIVERS ($ in millions) GAAP Adjusted VOLUME 2024 GROSS PROFIT $880 $887 Higher Freight, including Inspection Technologies acquisition, & Transit segments sales % Gross Profit Margin 33.0% 33.3% MIX/PRICING Cost recovery thru contract escalation, partially of
Slide 11: 3Q 2025 Consolidated Operating Income
3Q 2025 Consolidated Operating Income ($ in millions) GAAP Adjusted 2024 OP INCOME $433 $524 % Operating Margin 16.3% 19.7% Gross Profit 122 141 SG&A (57) (49) Engineering (9) (9) Amortization 2 - 2025 OP INCOME $491 $607 % Operating Margin 17.0% 21.0% Note: Adjusted numbers represent non-GAAP finan
Slide 12: 3Q 2025 Freight Segment Performance
3Q 2025 Freight Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $2.09B(2) $513M $1.93B $6.09B $467M 24.5% $414M $5.59B $390M 24.1% 19.8% 20.2% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ(1) ADJ(1) 8.4% INCREASE 8.9% INCREASE YOY (8.4% INCREASE EX-CURRENCY) (9.5% Excluding
Slide 13: 3Q 2025 Transit Segment Performance
3Q 2025 Transit Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $793M(1) $123M $2.18B $733M $115M $2.04B 15.5% 14.5% $93M $79M 12.8% 10.8% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ ADJ 8.2% INCREASE 7.2% INCREASE YOY (5.2% INCREASE EX-CURRENCY) (3.9% Excluding Currency)
Slide 14: Resilient Business Allows For Execution On Financial Priorities
Resilient Business Allows For Execution On Financial Priorities FOCUSED ON CASH CONVERSION (1 ) CASH FROM OPS DISCIPLINED CAPITAL ALLOCATION $187M Change in cash $148M Share repurchases $130M Dividends Strong balance sheet and financial $1,235M position … liquidity of $2.75B(3) Net Debt YTD 2025 YTD
Slide 15: 2025 Updated Financial Guidance
2025 Updated Financial Guidance(1,2) PRIOR GUIDANCE UPDATED GUIDANCE REVENUES REVENUES $10.925B to $11.225B $10.925B to $11.225B ADJUSTED DILUTED EPS ADJUSTED DILUTED EPS $8.55 to $9.15 $8.85 to $9.05 C A S H C O N V E R S I O N (3) C A S H C O N V E R S I O N (3) >90% >90% - Excludes Dellner & Frau
Slide 16: Key Expectations
Key Expectations 5-YEAR OUTLOOK 1 Strong revenue growth, margin expansion and increased Mid Single earnings Digit ORGANIC SALES CAGR 2 350+ bps Positive productivity driven by continuous cost improvement combined with realization of Integration 2.0 & 3.0 savings ADJUSTED OPERATING MARGIN EXPANSION 3
Slide 17: Income Statement
Income WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION Appendix A (1 of 2) Statement CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Nine Months Ended September 30,
Slide 18: Income Statement (cont.)
Appendix A (2 of 2) Income Statement (cont.) WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Nine Months Ended Septem
Slide 19: Balance Sheet
Appendix B Balance Sheet WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2025 December 31, 2024 In millions Cash, cash equivalents and restricted cash $ 528 $ 715 Receivables, net 2,198 1,702 Inventories, net 2,747 2,314 Other current a
Slide 20: Cash Flow
Appendix C Cash Flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, 2025 2024 In millions Operating activities Net income $ 979 $ 854 Non-cash expense 359 387 Receivables (368) (92) Inventories (228) (115) A
Slide 21: EPS and Non-GAAP Reconciliation
Appendix D (1 of 3) EPS and Non-GAAP Reconciliation Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comp
Slide 22: EPS and Non-GAAP Reconciliation
Appendix D (2 of 3) EPS and Non-GAAP Reconciliation Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comp
Slide 23: EPS and Non-GAAP Reconciliation
Appendix D (3 of 3) EPS and Non-GAAP Reconciliation Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period- to-period com
Slide 24: EBITDA Reconciliation
Appendix E EBITDA Reconciliation Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP f
Slide 25: Sales by Product Line
Appendix F Sales by Product Line WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended September 30, In millions 2025 2024 Freight Segment Equipment $ 677 $ 513 Components 375 371 Digital Intelligence 297 204 Services 744 842 Total Freight Segment $ 2,0
Slide 26: Segment Gross Margin & Operating Margin Reconciliation
Segment Gross Margin & Appendix G Operating Margin Reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Income from Income fr
Slide 27: Segment Sales Reconciliation
Appendix H Segment Sales Reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended September 30, In millions Freight Transit Consolidated 2024 Net Sales $ 1,930 $ 733 $ 2,663 Acquisitions 128 6 134 Portfolio Opti
Slide 28: Cash Conversion Reconciliation
Appendix I Cash Conversion Reconciliation Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. N
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